The acquisition deal for crypto exchange Bithumb’s controlling stake, involving 400 billion won (around $333 million), is on shaky grounds.
Citing anonymous sources from the industry, The Korea Herald on Monday provided an update on the deal.
In October last year, BTC Korea Holdings, the parent company and operator of Bithumb, which holds a 76 percent stake of the crypto exchange, inked a deal with Singapore-based BK Global Consortium to sell 50 percent plus one share of the exchange, transferring the control to the exchange.
According to the original contract, the deal was about to close in February. However, it has been extended twice due to a decline in payment with a deadline for September 30.
No money to acquire the exchange
Though a down payment of $100 million was made last year, the full payment is yet to be completed by BK Global Communications. Both companies agreed to extend the payment deadline after agreeing to extend the transfer of 70 percent of the stake instead of 50 percent.
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BK Global again missed the deadline and the $100 million made as a down payment has now become the subject of a legal battle, the report detailed.
To make the payments, BK Global agreed to sell 57.41 percent of its stake to Dual Industrial in July in exchange of 235.7 billion won (almost $196 million), however, that deal fell apart later that month, putting the Singapore-based company in jeopardy.
The report also detailed that BK Group is also in talks with another investor, Cho Yoon-hyeong, to support the deal. Coo is the largest shareholder in Kosdaq-listed Cornerstone Networks and also invested 150 billion won in BK Group.
“The deal is proceeding smoothly, and we’re working on details with BTC Holdings,” Dr. Kim Byung-gun, chairman of BK Group, told the local publication.
Due to the dip in the crypto market in 2018, Bithumb recorded a net loss of $170 million for the year, Finance Magnates reported earlier.